Primary TMT Prices Stable; Market Awaits Potential Price Revisions Next Week

Primary TMT prices remained stable on the final day of August, with key locations reporting consistent rates. Market demand is steady, but distributors anticipate potential price revisions next week, expecting a Rs. 500–1,000/ton increase. Distribution remains smooth due to ample inventory, and the market awaits further developments.

Price

  • The prices of primary TMT remained stable on the final day of August and are listed below for major locations: Ex-Mumbai: Rs. 50,500-51,000/ton Ex-Delhi NCR: Rs. 50,500-51,000/ton Ex-Vizag: Rs. 49,000-49,500/ton
  • The prices are for 12 to 32mm sizes, Grade Fe 550/550D and exclude trade discounts, as well as GST.
  • Distributors across the North, West, and South have observed reduced prices from all primary mills. The above pricing reflects this trend.

Demand and Supply

  • Market demand appears steady, with minimal inquiries. Distributors expect primary mills to raise prices in the coming week, predicting an increase of around Rs. 500–1,000/ton. Distribution and supply remain smooth, as distributors have ample inventory on hand.

News

  • India’s steel trade dynamics shifted in FY24 as imports surged by 38% year-on-year to 8.3 million tons, resulting in a trade deficit. ArcelorMittal Nippon Steel and JSW Steel initiated an anti-dumping probe against Vietnam, blaming it for the influx of cheap hot-rolled coils (HRC). However, data reveals that China is a larger concern, accounting for 43% of India's steel imports, with 2.7 million tonnes. China’s steel exports to India have increased due to a downturn in its real estate sector, leading to excess production being offloaded to international markets, particularly India.

Expert Opinion

  • Customers anticipate further price reductions. However, there are differing opinions in the market, with distributors expecting a price increase from primary mills next month. Clarity in the price trend may emerge in the coming week.
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